HJR 5C

1	House Joint Resolution
2	A joint resolution proposing an amendment to Sections 2,
3	4, and 6 and the creation of Section 19 of Article VII and
4	the creation of Section 27 of Article XII of the State
5	Constitution to provide for an alternative methodology for
6	changing assessments of homestead property, rate for
7	taxing homestead property, and homestead exemption,
8	provide for transitional assessments of homestead
9	property, and provide an effective date.
10
11	Be It Resolved by the Legislature of the State of Florida:
12
13	That the following amendment to Sections 2, 4, and 6 and
14	the creation of Section 19 of Article VII and the creation of
15	Section 27 of Article XII of the State Constitution are agreed
16	to and shall be submitted to the electors of this state for
17	approval or rejection at the next general election or at an
18	earlier special election specifically authorized by law for that
19	purpose:
20	ARTICLE VII
21	FINANCE AND TAXATION
22	SECTION 2.  Taxes; rate.--Except as provided in Section 19
23	of this Article, all ad valorem taxation shall be at a uniform
24	rate within each taxing unit, except the taxes on intangible
25	personal property may be at different rates but shall never
26	exceed two mills on the dollar of assessed value; provided, as
27	to any obligations secured by mortgage, deed of trust, or other
28	lien on real estate wherever located, an intangible tax of not
29	more than two mills on the dollar may be levied by law to be in
30	lieu of all other intangible assessments on such obligations.
31	SECTION 4.  Taxation; assessments.--By general law
32	regulations shall be prescribed which shall secure a just
33	valuation of all property for ad valorem taxation, provided:
34	(a)  Agricultural land, land producing high water recharge
35	to Florida's aquifers, or land used exclusively for
36	noncommercial recreational purposes may be classified by general
37	law and assessed solely on the basis of character or use.
38	(b)  Pursuant to general law tangible personal property
39	held for sale as stock in trade and livestock may be valued for
40	taxation at a specified percentage of its value, may be
41	classified for tax purposes, or may be exempted from taxation.
42	(c)  Except as provided in Section 19 of this Article, all
43	persons entitled to a homestead exemption under Section 6 of
44	this Article shall have their homestead assessed at just value
45	as of January 1 of the year following the effective date of this
46	amendment. This assessment shall change only as provided herein.
47	(1)  Assessments subject to this provision shall be changed
48	annually on January 1st of each year; but those changes in
49	assessments shall not exceed the lower of the following:
50	a.  Three percent (3%) of the assessment for the prior
51	year.
52	b.  The percent change in the Consumer Price Index for all
53	urban consumers, U.S. City Average, all items 1967=100, or
54	successor reports for the preceding calendar year as initially
55	reported by the United States Department of Labor, Bureau of
56	Labor Statistics.
57	(2)  No assessment shall exceed just value.
58	(3)  After any change of ownership, as provided by general
59	law, homestead property shall be assessed at just value as of
60	January 1 of the following year. Thereafter, the homestead shall
61	be assessed as provided herein.
62	(4)  New homestead property shall be assessed at just value
63	as of January 1st of the year following the establishment of the
64	homestead. That assessment shall only change as provided herein.
65	(5)  Changes, additions, reductions, or improvements to
66	homestead property shall be assessed as provided for by general
67	law; provided, however, after the adjustment for any change,
68	addition, reduction, or improvement, the property shall be
69	assessed as provided herein.
70	(6)  In the event of a termination of homestead status, the
71	property shall be assessed as provided by general law.
72	(7)  The provisions of this amendment are severable. If any
73	of the provisions of this amendment shall be held
74	unconstitutional by any court of competent jurisdiction, the
75	decision of such court shall not affect or impair any remaining
76	provisions of this amendment.
77	(d)  The legislature may, by general law, for assessment
78	purposes and subject to the provisions of this subsection, allow
79	counties and municipalities to authorize by ordinance that
80	historic property may be assessed solely on the basis of
81	character or use. Such character or use assessment shall apply
82	only to the jurisdiction adopting the ordinance. The
83	requirements for eligible properties must be specified by
84	general law.
85	(e)  A county may, in the manner prescribed by general law,
86	provide for a reduction in the assessed value of homestead
87	property to the extent of any increase in the assessed value of
88	that property which results from the construction or
89	reconstruction of the property for the purpose of providing
90	living quarters for one or more natural or adoptive grandparents
91	or parents of the owner of the property or of the owner's spouse
92	if at least one of the grandparents or parents for whom the
93	living quarters are provided is 62 years of age or older. Such a
94	reduction may not exceed the lesser of the following:
95	(1)  The increase in assessed value resulting from
96	construction or reconstruction of the property.
97	(2)  Twenty percent of the total assessed value of the
98	property as improved.
99	SECTION 6.  Homestead exemptions.--
100	(a)  Every person who has the legal or equitable title to
101	real estate and maintains thereon the permanent residence of the
102	owner, or another legally or naturally dependent upon the owner,
103	shall be exempt from taxation thereon, except assessments for
104	special benefits, up to the assessed valuation of five thousand
105	dollars, upon establishment of right thereto in the manner
106	prescribed by law. The real estate may be held by legal or
107	equitable title, by the entireties, jointly, in common, as a
108	condominium, or indirectly by stock ownership or membership
109	representing the owner's or member's proprietary interest in a
110	corporation owning a fee or a leasehold initially in excess of
111	ninety-eight years.
112	(b)  Not more than one exemption shall be allowed any
113	individual or family unit or with respect to any residential
114	unit. No exemption shall exceed the value of the real estate
115	assessable to the owner or, in case of ownership through stock
116	or membership in a corporation, the value of the proportion
117	which the interest in the corporation bears to the assessed
118	value of the property.
119	(c)  Except as provided in Section 19 of this Article, by
120	general law and subject to conditions specified therein, the
121	exemption shall be increased to a total of twenty-five thousand
122	dollars of the assessed value of the real estate for each school
123	district levy. By general law and subject to conditions
124	specified therein, the exemption for all other levies may be
125	increased up to an amount not exceeding ten thousand dollars of
126	the assessed value of the real estate if the owner has attained
127	age sixty-five or is totally and permanently disabled and if the
128	owner is not entitled to the exemption provided in subsection
129	(d).
130	(d)  Except as provided in Section 19 of this Article, by
131	general law and subject to conditions specified therein, the
132	exemption shall be increased to a total of the following amounts
133	of assessed value of real estate for each levy other than those
134	of school districts: fifteen thousand dollars with respect to
135	1980 assessments; twenty thousand dollars with respect to 1981
136	assessments; twenty-five thousand dollars with respect to
137	assessments for 1982 and each year thereafter. However, such
138	increase shall not apply with respect to any assessment roll
139	until such roll is first determined to be in compliance with the
140	provisions of Section section 4 of this Article by a state
141	agency designated by general law. This subsection shall stand
142	repealed on the effective date of any amendment to Section
143	section 4 of this Article which provides for the assessment of
144	homestead property at a specified percentage of its just value.
145	(e)  By general law and subject to conditions specified
146	therein, the Legislature may provide to renters, who are
147	permanent residents, ad valorem tax relief on all ad valorem tax
148	levies. Such ad valorem tax relief shall be in the form and
149	amount established by general law.
150	(f)  The legislature may, by general law, allow counties or
151	municipalities, for the purpose of their respective tax levies
152	and subject to the provisions of general law, to grant an
153	additional homestead tax exemption not exceeding fifty thousand
154	dollars to any person who has the legal or equitable title to
155	real estate and maintains thereon the permanent residence of the
156	owner and who has attained age sixty-five and whose household
157	income, as defined by general law, does not exceed twenty
158	thousand dollars. The general law must allow counties and
159	municipalities to grant this additional exemption, within the
160	limits prescribed in this subsection, by ordinance adopted in
161	the manner prescribed by general law, and must provide for the
162	periodic adjustment of the income limitation prescribed in this
163	subsection for changes in the cost of living.
164	(g)  Each veteran who is age 65 or older who is partially
165	or totally permanently disabled shall receive a discount from
166	the amount of the ad valorem tax otherwise owed on homestead
167	property the veteran owns and resides in if the disability was
168	combat related, the veteran was a resident of this state at the
169	time of entering the military service of the United States, and
170	the veteran was honorably discharged upon separation from
171	military service. The discount shall be in a percentage equal to
172	the percentage of the veteran's permanent, service-connected
173	disability as determined by the United States Department of
174	Veterans Affairs. To qualify for the discount granted by this
175	subsection, an applicant must submit to the county property
176	appraiser, by March 1, proof of residency at the time of
177	entering military service, an official letter from the United
178	States Department of Veterans Affairs stating the percentage of
179	the veteran's service-connected disability and such evidence
180	that reasonably identifies the disability as combat related, and
181	a copy of the veteran's honorable discharge. If the property
182	appraiser denies the request for a discount, the appraiser must
183	notify the applicant in writing of the reasons for the denial,
184	and the veteran may reapply. The Legislature may, by general
185	law, waive the annual application requirement in subsequent
186	years. This subsection shall take effect December 7, 2006, is
187	self-executing, and does not require implementing legislation.
188	SECTION 19.  Alternative homestead property assessment;
189	taxation; exemption; future revision limitation.--
190	(a)  All persons entitled to a homestead exemption under
191	this section shall have their homestead assessed at just value
192	as of January 1 of the year following the effective date of this
193	section. This assessment shall be changed each year by the
194	percentage change in the market value of the property from the
195	prior year, provided that, any increase in the assessment shall
196	not exceed the lower of three percent (3%) of the assessment for
197	the prior year or the percent change in the Consumer Price Index
198	for all urban consumers, U.S. City Average, all items 1967=100,
199	or successor reports for the preceding calendar year as
200	initially reported by the United States Department of Labor,
201	Bureau of Labor Statistics.
202	(b)  Under this section, homestead property shall be taxed
203	at the rate of one and one-half percent (1.5%) of the just value
204	of the property.
205	(c)  Every person who has the legal or equitable title to
206	real estate and maintains thereon the permanent residence of the
207	owner, or another legally or naturally dependent upon the owner,
208	shall be exempt from taxation thereon, except assessments for
209	special benefits, up to the assessed valuation of the median
210	value of single-family homes for the prior year in the county in
211	which the homestead is located. The owner of a homestead who is
212	65 years of age or older and whose income does not exceed 80
213	percent of the median family income for the county shall be
214	entitled to an additional exemption equal to the amount of the
215	exemption provided in this subsection.
216	(d)  The provisions of this section shall apply only to the
217	owner of homestead property and the homestead if the owner makes
218	an irrevocable election to have this section apply instead of
219	Sections 2, 4, and 6 of this Article.
220	(e)  By general law, the legislature shall provide
221	regulations to implement and enforce this section.
222	(f)  Notwithstanding any other provision of Article XI, any
223	revision to the provisions of this section may be made only by
224	initiative filed as provided in Section 3 of Article XI and
225	submitted to the voters in a general election.
226	ARTICLE XII
227	SCHEDULE
228	SECTION 27.  Transitional assessments of homestead
229	property; effective date.--
230	(a)  Each person entitled to a homestead exemption under
231	Section 6 of Article VII on the effective date of this section
232	shall continue to have the person's current homestead assessed
233	under Section 4(c) of Article VII until the person makes an
234	irrevocable election to have the person's homestead assessed
235	under Section 19 of Article VII. After an irrevocable election
236	is made, the homestead will continue to be assessed under
237	Section 4(c) of Article VII until December 31 of the year in
238	which the election is made and thereafter may not be assessed
239	under Section 4(c) of Article VII. Beginning January 1 of the
240	year following such election, the homestead shall be assessed
241	and taxed as provided by Section 19 of Article VII. By general
242	law and subject to conditions specified therein, the legislature
243	shall provide procedures for persons to make the election.
244	(b)  The amendments to Sections 2, 4, and 6 and the
245	creation of Section 19 of Article VII, providing an alternative
246	methodology for changing assessments of homestead property,
247	taxing homestead property at 1.5 percent of just value, and
248	providing a homestead exemption equal to the median value of
249	single-family homes in the county in which the homestead is
250	located and a double homestead exemption for low-income property
251	owners 65 years of age or older, and limiting revisions to a
252	citizen's initiative, and this section, providing for
253	transitional assessments of homestead property, if submitted to
254	the electors of this state for approval or rejection at a
255	special election authorized by law to be held in 2008, shall
256	take effect upon approval by the electors and shall operate
257	retroactively to January 1, 2008, or, if submitted to the
258	electors of this state for approval or rejection at the next
259	general election, shall take effect January 1 of the year
260	following such general election.
261	BE IT FURTHER RESOLVED that the following statement be
262	placed on the ballot:
263	CONSTITUTIONAL AMENDMENT
264	ARTICLE VII, SECTIONS 2, 4, 6, 19
265	ARTICLE XII, SECTION 27
266	ALTERNATIVE HOMESTEAD PROPERTY ASSESSSMENT, TAXATION,
267	EXEMPTION.--Proposing changes to the State Constitution relating
268	to ad valorem taxation as follows:
269	1.a.  Provides for changing the assessment of homestead
270	property each year by the percentage change in the market value
271	of the property from the prior year and limiting increases in
272	assessments to the lower of 3 percent or the percentage change
273	in the Consumer Price Index.
274	b.  Provides for taxing homestead property at 1.5 percent
275	of the just value of the property.
276	c.  Provides for a homestead exemption equal to the median
277	value of single-family homes in the county in which the
278	homestead is located and a double exemption for homestead owners
279	65 years of age or older with an income not exceeding 80 percent
280	of the median family income for the county.
281	2.  Preserves the existing assessment, taxation, and
282	exemption of homestead property but provides for an irrevocable
283	election by the homestead owner to apply the provisions of the
284	amendments to the homestead property.
285	3.  Limits revising the provisions of the amendment to
286	citizen's initiative.
287	4.  Schedules the changes to take effect upon approval by
288	the voters and operate retroactively to January 1, 2008, if
289	approved in a special election held in 2008, or to take effect
290	January 1, 2009, if approved in the general election held in
291	November of 2008.

CODING: Words stricken are deletions; words underlined are additions.